By-Laws

Amended September, 1984

Amended January 1988

Amended September, 1996

Amended May 1997

Amended May 2000

Amended November, 2003

Amended May, 2005

Amended May, 2007

The name of the corporation is Lake Stockholm Country Club and Community Association, herein identified as the LSCC&CA, which corporation is and shall remain a non-profit corporation.

Section 1. Membership in the LSCC&CA shall be required of and the sole qualification for which shall be those persons who own real estate as bound by deed covenants derived from Lake Edwards Corporation, and its successor corporations.

B. To formulate rules and regulations for the use of the properties enumerated in Paragraph A above.

C. To promote a high standard for the Community.

D. To make available and adequate system of administration, fire protection, policing, garbage and sewage disposal for the properties as enumerated in Paragraph A. above.

F. The scope of the powers herein enumerated shall extend to those lands, and for the benefit of those lands conveyed, subject to the rules and regulations which may be established by said LSCC&CA.

G. The place where the LSCC&CA is located or its business is conducted is in the Townships of Hardyston and Jefferson, in the Counties of Sussex and Morris, State of New Jersey.

Section 1. Membership in the LSCC&CA shall be required of those persons whose deeds are derived from Lake Edwards Corporation and its successor corporations.

Section 2. Membership Defined: Each improved property bound by the covenants of Lake Edwards and its successor corporations shall be entitled to one membership. An improved property shall be defined as one upon which there is a dwelling. The owner of more than one improved property shall be required to pay dues on each improved property and shall be entitled to one membership for each improved property. [May, 2000].

Section 2 (A). A member in good standing shall be defined as any property owner bound by the covenants of Lake Edwards and its successor corporations, who is not in violation of any of the By-Laws or rules and regulations of Lake Stockholm CC & CA, and is paid current in all Club charges including initiation fees, club dues, assessment charges, reserves, fines, and any other charges imposed by Lake Edwards Corp. and its successor corporations, (LSCC&CA). [May 2007]

Section 4. Members shall be responsible for all actions of themselves, as well as their guests and any assignees of their membership rights, for any violations of any of the rules and regulations of the LSCC&CA.

Section 5. Voting Privileges: Each property owner in good standing shall have one vote, which may be cast by either spouse or by the designee of either party. The designee must be designated by a written proxy or other authorization. Said proxy shall only be valid for the election of officers, which may be done by ballot. Valid current badges must be worn and visible at all meetings. [May 2007]

Section 1. Initiation fees shall be in an amount equal to that set by the Board of Trustees adopted at the annual meeting, or at a special meeting called to consider such fees, for the purpose of adopting a budget. Initiation fees shall be immediately due and payable upon the transfer of title or upon the completion of a new home and the issuance of a Certificate of Occupancy. This initiation fee may be waived with the approval of the general membership. All initiation fees shall be placed in the general revenues of the LSCC&CA...[May 2007]

Section 2. Each year on September 1^st , or on such date as the members of the Board of Trustees shall designate, the Board shall meet to prepare a budget for the coming fiscal year, which is tois to be presentedbe presented for approval at the annual membership meeting. The budget shall be based upon the reasonably anticipated expenses for the providing of the services and facilities as set forth in Article II. The budget may include a line item for reserves for uncollected dues. The manner of determining the responsibility for each property owner shall be as follows:

The total budget expenses shall be divided by the number of property owners in the Community to arrive at the dues for which each property shall be responsible. Any increase in dues shall be made with the approval of the general membership.

(a) An amount of twenty-five ($25.00) dollars shall be deducted from membership dues for participation in any of the following work days (maximum of three [3] vouchers): gen eral meetings (maximum of one [1] voucher) and any board approved activity (maximum of one [1] voucher). However, no member shall be entitled to more than four (4) vouchers per year for such participation, for a total deduction of not more than one hundred fifty ($100.00) dollars from annual dues. Any change in this amendment shall be made with the approval of the general membership.[. [May 2005]

Section 3. The Board of Trustees shall mail to the membership the annual statement of dues that are owing by March 1^st of the relevant year. Dues shall be due and payable on or before May 31^st of the relevant year. Dues paid after that date will be subject to a late charge, which shall be equivalent to an amount sufficient to cover the reasonable anticipated expenses incurred in collection of any delinquent accounts.

Section 4. Each person acquiring land, which is subject to the deed covenants set forth above, shall be required to become a member of the LSCC&CA and shall be required to complete a census questionnaire form whichthat can be obtained from the LSCC&CA. The Officers and Trustees of the LSCC&CA shall prepare the census forms questionnaire forms. These forms shall be for the purpose of keeping an accurate membership list and for means of identification required for the use fo of the facilities and services of the LSCC&CA. This information shall be deemed confidential and shall not be released to any other organization or body.. [May 2007]

Section 5. Membership dues and initiation fees shall be utilized solely for the maintenance of the facilities and services of the community and related costs incurred in providing such facilities and services.

Section 6. Senior citizens (65 years and ov er) shall be entitled to receive twenty (20%) per cent discount in membership fees, when in good standing, and a fifty ($50.00) dollar discount in initiation fees. Any senior citizen may waive his or her discount at any time.

The LSCC&CA Board of Trustees are entitled to have their dues waived while serving on the Board. [May, 1997, reaffirmed November, 2003]

Section 8. In addition to the other dues and assessments herein authorized, the Board of Trustees may, subject to the provisions below, levy, in any assessment year, a special capital expense assessment, for the purpose of defraying in whole or in part, the cost of any reconstruction, repair, replacement, upgrade, maintenance or acquisition of additional Community Property,. whichThis property may include, but areis not limited to improved and unimproved land, streets, curbs, sidewalks, common parking areas, lakes and lake beds, beaches, landscaped areas, system infrastructure improvements (such as drainage systems and utility systems); buildings, and any tangible personal property, or for any other lawful purpose, not determined by the Board of Trustees to constitute an emergency or immediate need, but for which funds held in reserve are inadequate., provided, h However, that itthe Board shall first receive the consent of fifty (50%) per cent plus one in interest of the property owners in good standing and eligible to vote in accordance with Article III, Section 5, hereof. This vote shall be taken at a special meeting duly called for this purpose. Written notice of such a special meeting, stating the purpose of the meeting, shall be sent to all members no less than ten (10) days in advance of the special meeting. The due date of any special common expense assessment, or any installment(s) thereof, shall be fixed in the proposed Resolution authorizing the special common expense assessment. [November, 2003]

SSection 9. When preparing the Annual Budget, the Board of Trustees may include a line item to provide for reserves for deferred maintenance that would occur less frequently than annually, a reserve for replacements, which shall include funds for repair or replacement of the Community Property, and those portions of the Community Property for which repair or replacement is required because of damage, depreciation or obsolescence or repair for capital improvements, which shall include funds to be used for capital expenditures or acquisition of additional personal property that will be part of the Community Property. This line item expense for reserves shall be included as part of the total budget expense and divided among the property owners in the Community pursuant to Section 2 hereof. The Board of Trustees shall not be obligated to expend all of the Reserves collected in any budget year, but shall maintain reasonable reserves for, among other things,: repair, replacements, emergencies, contingencies, bad weather or uncollected accounts. Notwithstanding anything herein to the contrary, the Board of Trustees shall specifically designate and identify that portion of the Annual Dues, which is to be assessed against the Members as a capital contribution and is allocable to Reserves for each separate item of capital improvement of, to and for the Community Property. The amounts assessed and collected for the Reserves shall be kept in one or more interest bearing savings accounts, or Certificates of Deposit and shall not be utilized for any purpose other than that which was contemplated at the time of the assessment. The foregoing shall not be construed to mean that the Board of Trustees shall not be permitted to keep additional cash on hand, in a checking or petty cash account, for the necessary discharge of its functions.[November, 2003] The Board of Trustees has the right to compromise, adjust, and settle payment of charges provided for herein where deemed advisable. Membership privileges in LSCC & CA will not be granted on resale of any property within the LSCC & CA Association until all past and present Club Charges are paid in full.[May 2007]

Section 1. The Officers and Trustees of the LSCC&CA shall be empowered to conduct all of the business of the corporation, submitting a budget and report of their stewardship at each annual meeting in September.

Section 2. The Officers and Trustees shall be elected at the Annual Meeting and take office October 1^st. All Officers and Trustees shall be required to attend sixty-six (66%) per cent of the regular board meetings. Failure to do so may result in a request of resignation of that board member.

Section 3. The Board of Trustees shall consist of a President, Vice-President, Secretary, Treasurer and five (5) Trustees, and shall be elected by members in good standing of the LSCC&CA. The Officers and Trustees must themselves be members in good standing. [January, 1988]

Section 4. Each Officer and Trustee shall be entitled to one (1) vote at board meetings.

Section 5. In case of any vacancy occurring, the Board of Trustees may fill the vacancy by a majority vote.

Section 2. The Vice-President shall perform the duties of the President in the absence of the President.

Section 3. The Secretary shall keep a record of all meetings and shall notify all members of the LSCC&CA in writing as to the time of meetings: Annual, General or Special, not later than ten (10) days before the scheduled meeting date.

Section 4. The Treasurer shall receive and deposit all funds. He or she shall maintain records of receipts, deposits and disbursements and present a Financial Report to the LSCC&CA at the Annual Meeting, or at any other times that he or she shall be so requested by the President.

Section 5. Any Officer or Trustee authorized to issue or endorse checks shall be bonded.

Section 6. The duties of the Trustees shall be to assist the President, Vice-President, Treasurer and Secretary and to attend all meetings of the Officers and Trustees.

Section 7. The Board of Trustees shall also have the power to retain agents and employees for the purpose of furthering the interest of the LSCC&CA. The retention and discharge of any employee or agent shall be by majority vote of the present and voting members of the Board of Trustees.

A. All members of the Board of Trustees, including Officers, shall be indemnified to the fullest extent now or hereafter permitted by law in connection with any actual or threatened action or proceeding, including civil, criminal, administrative, or investigative, arising from their service to the LSCC&CA or to another organization at the request of the LSCC&CA. [November, 2003]

B. The provisions of this section shall be applicable to actions or proceedings commenced after the adoption hereof, whether arising from actsacts or omissions occurringomissions occurring before or after the adoption hereof, and also to persons who have ceased to be members of the Board of Trustees, and shall insure to the benefit of their heirs, executors and administrators. Expenses involved with this indemnification shall be borne by the LSCC&CA or any insurance policies purchased by the LSCC&CA. [November, 2003]

C. The provisions of this section are not applicable to any member of the Board of Trustees, including officers, whether past or present, who has beenhas chargedbeen charged or alleged in an action or claim as described in Section 6 (a) above to be liable or guilty of gross negligence, willful misconduct or criminal conduct, unless and until such time as the Board Member is exonerated. [November, 2003]

Section 1. The president may, from time to time, appoint such other committees as may be deemed necessary, desirable or advisable for administrative purposes or the welfare of the LSCC & CA and may assign additional duties to any committee.

Section 2. All committees of the LSCC & CA shall be under the jurisdiction of the Board of Trustees. Any funds in their possession must be audited along with the books and records of the LSCC & CA at the end of the fiscal year and must be submitted to an auditor.

ARTICLE VIII

Section 1. There shall be two (2) kinds of meetings, as follows:

A. Officers and Trustees: The President or any two (2) officers may call a meeting of the Officers and Trustees at any time. A quorum of the Board of Trustees shall consist of four of the officers and/or trustees.

B. Membership: There shall be three (3) types of membership meetings: Annual, General and Special. Twenty (20) persons in good standing shall constitute a quorum at a Membership Meeting.

Section 2. A General Meeting shall be held in May and the Annual Meeting shall be held in September, at which Annual Meeting the election of officers shall be held and the budget shall be presented for the approval by the general membership. Special Meetings may be called by the Board of Trustees when necessary.

Section 3. The procedures of the meetings shall be governed by Roberts Rules of Order. The president has the right to appoint a parliamentarian for the purpose of monitoring the meeting and maintaining the course of the meeting to comply with the Roberts Rules of Order. [May 2007]

These By-Laws may be amended or altered by a two-thirds (2/3) affirmative vote by ballot of the membership present at any stipulated meeting, provided that a written notice of such proposed changes, over the signature of the Secretary, shall be mailed to each member of the LSCC&CA at least ten (10) days prior to the meeting date at which such proposed change or changes shall be submitted to a vote.

ARTICLE X

Section 1. The Board of Trustees of the LSCC&CA may suspend the privilege of the use of the facilities and services of the LSCC&CA upon the happening of one of the following reasons;:

(1A) Failure by a member to pay the Club duescharges, including dues, assessments, reserves, fines, and other charges, on a timely basis;. [May 2007]

(2B) The finding of a violation of the Rules and Regulations of the LSCC&CA. Said finding must be made directly by either the Board of Trustees or its designates in accordance with the procedures set forth below.

Section 3. Rules and Regulations of the LSCC&CA. The Board of Trustees of the LSCC&CA havehas adopted Rules and Regulations for the use of the facilities and services of the organization. These Rules and Regulations are set forth and annexed hereto in Schedule A. Any violation of these Rules and Regulations by a member, a family member, or guest or assignee of said member, shall subject that memberthat member to the sanctions, including possible monetary fines, which the Board of Trustees of the LSCC&CA deems to be appropriate and which may be imposed by the Board of Trustees. If a violation of the Rules and Regulations is alleged, the Board of Trustees shall, in writing, notify the member of the following:: [May 2007]

(1A) The Rules and Regulations allegedly violated;

(2B) The proposed penalty;

(3C) The notice shall also indicate thhat the member has a right to a hearing, which shall be conducted at such time and place as the Board of Trustees shall designate.

Section 4. Rules and Regulations shall be available to all members of the LSCC&CA by request. This request should be made to the LSCC&CA at PO Box 151, Stockholm, New Jersey 07460.

Section 5. Revision of Regulations concerning the use of the facilities and/or the services of the LSCC&CA shall be made by the majority present and voting members of the general membership at any meeting of said general membership.

The Board of Trustees of the LSCC&CA may bring to the attention of and prosecute through any municipal authorities any violation of any township ordinances, which, in the opinion of the majority of the Board of Trustees, interferes with any of the purposes of the LSCC&CA or any of its members. The Board is further authorized to designate a representative to appear before any municipal authority for the purpose of prosecuting the violation of any municipal ordinance or of bringing said violation to the attention of any municipal authority. The Board of Trustees is further authorized to indemnify any Trustee or other person acting on behalf of the Board from any action, which may result, or any expenses incurred in connection on therewith on behalf of any actions taken for the benefit of the LSCC&CA.